AI use surges in Australian public sector amid data siloes

AI use among Australian public sector workers has risen sharply over the past year, according to survey data from Appian, even as more staff report problems with disconnected databases and siloed information.

The survey of 500 public sector workers found 70% now use AI as part of their daily tasks. That figure stood at 58% a year earlier. Appian compared the result with Australian Government figures showing an 82% AI adoption rate in large private enterprises.

The findings point to growing familiarity with AI tools inside government agencies. Appian said 68% of respondents felt confident in understanding the AI tools used in their roles. The figure was 59% in 2024.

"AI has the potential to revolutionise public sector processes, connecting siloed systems and automating routine tasks," said Luke Thomas, Area Vice President Asia Pacific and Japan, Appian. "It's really encouraging to see public sector workers becoming increasingly engaged with AI technologies as part of their daily roles. This can free up valuable time for staff to focus on more meaningful work and engage more effectively with citizens."

Tool sprawl

Thomas said some organisations treated AI as a bolt-on rather than a change to how work runs across systems and data. He pointed to deployments that sit apart from core workflows.

"This kind of fragmented AI adoption doesn't deliver the widespread improvements in productivity or resilience that public sector leaders are looking for," said Thomas.

The data suggests digital programmes have continued across the sector. Appian said 87% of respondents reported their organisation had implemented new digital initiatives over the past five years.

Workers also reported a stronger impact from these projects than they did a year ago. Appian said 81% of respondents believed digital transformation projects had improved collaboration and communication inside their department or agency, up from 64% in 2024.

On service delivery, 86% said digital transformation had made public services more accessible to citizens. That figure was 63% in 2024.

"The public sector manages enormous volumes of information, and workers face constant pressure around data management, compliance and administration," said Thomas. "It's really positive to see continued investment in digital tools translating into real improvements for staff and making public services more accessible for citizens."

Data disconnect

The same survey also found a rising share of workers struggling with the underlying state of agency data. Appian said 72% reported problems with separate, disconnected databases in their organisation. The figure was 56% in 2024.

Staff linked those disconnections to day-to-day working practices. Appian said 64% of respondents acknowledged that disconnected databases had reduced collaboration inside their department or agency. The figure was 49% in 2024.

The survey also indicated an information-access gap. Appian said 53% of workers found themselves working with incomplete or inaccessible information because of data siloes.

"The rise in digital tools alongside growing system fragmentation shows that many public sector organisations are rolling out technology in isolation rather than integrating it in a way that streamlines processes and connects information," Thomas said.

"As a result, AI is falling short, but it's not because of the technology itself. It falls short when organisations layer new tools on top of disconnected data, legacy systems and manual handoffs - conditions that make it impossible for technology to deliver its full value."

Process focus

Appian framed the results as a signal that agencies face a sequencing issue. The survey shows wider take-up of AI tools and broader digital activity. It also shows more staff encountering fragmentation in databases and systems.

Thomas argued agencies should link AI deployments with end-to-end processes that matter to service delivery and internal operations.

"We encourage organisations to start with their processes, not the technology," Thomas said. "Identify where the bottlenecks, delays and pain points sit. Only then can you determine where AI and other new technologies will meaningfully improve the process and deliver lasting impact."

Appian said it commissioned Zoho research to run the survey of 500 Australian public sector workers in Q4 2025.